IKEA Canada reports sales of $2.6 billion for 2022
BURLINGTON, Ontario – While national store visits increased by 123%, IKEA Canada reported last week sales for the fiscal year ending August 31, 2022, only edged forward by 1.3% to $2.63 billion. However, that was sufficient to ensure it remains this country’s second largest furniture retailer.
The Canadian branch of Inter IKEA Group, the global home furnishings retailer based in the Netherlands, revealed it vital statistics for its last fiscal year in its newly published 2022 Summary Report.
It also announced it will open its second small format store in the Scarborough Town Centre – in the east end of Toronto – in the summer of 2023. Covering nearly 7,500 square meters on the ground floor at the northeast corner of the shopping centre, it joins the IKEA Toronto Downtown/Aura location that opened in May 2022.
“We are grateful Canadians are returning to connecting in-person, including at our IKEA stores, plan and order points, and design studios, and are pleased to announce our continued Canadian expansion,” IKEA Canada chief executive and chief sustainability officer Michael Ward said in a statement.
“The planned Scarborough store is part of our broader investment in sustainability, affordability, and omnichannel shopping experiences that help to make us more accessible to our customers,” he continued.
Like other major Canadian furniture and mattress retailers, instore has been measurably stronger than online since government restrictions imposed to curb the COVID-19 pandemic were lifted in mid-2021. IKEA Canada said e-commerce sales for its 2022 fiscal year totalled $640.5 million, or 24.3% of sales. However, that’s down 33.9% from the $969.5 million – or 34.7% of its $2.59 billion in sales – recorded for the prior year. Instore sales climbed an estimated 22.8% on a year-over-year basis.
Although classified as a furniture store by Statistics Canada – meaning sales of furniture and mattresses account for at least 50% of annual revenue – IKEA Canada doesn’t break down sales by product category.
However, the 2022 Summary Report does provide some insight into the retailer’s business – from furniture to food. For example, Canadian consumers turned thousands of preloved products into in-store credit this year through the IKEA Sell-Back program, while more than 78,000 spare parts orders were fulfilled, and hundreds of Canadians attended Care and Repair workshops to maintain and extend the life of their IKEA furniture.
Meanwhile, Canada has become one of the strongest global markets for the sale of plant balls, the recently launched plant-based alternative to IKEA’s classic meatballs.
“Our impact on the planet starts with the positive impact we make in the lives of our people. The continued growth and expansion we have achieved in Canada would not have been possible without the hard work, determination and skills of the co-workers who are at the heart of the IKEA Canada business. It’s only fitting that we show our gratitude through our actions,” Ward said.
IKEA Canada’s investment in its people included the disbursement of a one-time financial gift estimated at $6 million to eligible co-workers, in recognition of the contribution they made during the pandemic. The company has also expanded its benefits, enabling co-workers to use their Wellness Spending for a wider range of health services such as alternative medicine, holistic health services, Indigenous traditional healing practices, and gender affirmation.
Other key findings in the IKEA 2022 Summary Report include:
- Customers made over 189 million online visits to IKEA.ca and the IKEA app between September 2021 and August 2022 while 1.77 million orders were delivered and 776,510 click and collect orders were processed.
- Food sales increased 160% to $97.5 million, with customers enjoying more than 20 million meatballs, nearly seven million plant balls, more than 1.7 million hot dogs and 1.8 million frozen yogurts.
- Canada’s most-purchased items included FRAKTA shopping bags, as well as classic, affordable dinnerware from the OFTAST Series.
To learn more about the 2022 results achieved by IKEA Canada, visit IKEA.ca/Reports.
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